A retrofitted space-heating system is being considered for a small office building. The system can be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $110,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six-year period. A kilowatt-hour of electricity costs $0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be $8,000 at the end of six years, and additional annual operating and maintenance expenses are negligible. Use the AW method to determine whether this system should be installed. A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $110,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six-year period. A kilowatt-hour of electricity costs $0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be $8,000 at the end of six years, and additional annual operating and maintenance expenses are negligible. Use the AW method to determine whether this system should be installed.
Expert Answer:
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date:
Students also viewed these civil engineering questions
-
A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed for $120,000, and it will save an estimated 300,000 kilowatt-hours (kWh)...
-
An automatic welding machine is being considered for production. It will be considered for purchase if it is successful for 99% of its welds. Otherwise, it will not be considered efficient. A test is...
-
An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for eight years. It is believed that $10,000...
-
Explain why it has been suggested that the new rules in IFRS 16 could bring the biggest shake-up to retailers financial statements for decades.
-
For all x R, -|x| Prove that if n Z+, n > 2, and x1, x2, . . . , R, then |x1 + x2 + + xn| -x, if xs0
-
If a club consists of 10 members, how many different arrangements of president, vice president, and secretary are possible?
-
Jason Cannon purchased a defective tractor for which Cannon brought numerous causes of action against Bodensteiner Implement Company (Bodensteiner). One of the claims was breach of express...
-
Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011. To prepare a master budget for January,...
-
Alice wants to buy apples, beets, and carrots. An apple, a beet, and a carrot cost 16 dollars, two apples and three beets cost 23 dollars, and one apple, two beets, and three carrots cost 35 dollars....
-
A firm must decide between constructing a new facility or renting a comparable office space. There are two random outcomes for acquiring space, as shown in Figure PI 2-25. Each would accommodate the...
-
??? ? Bad Debts: For tax purposes, the corporation uses the direct write-off method of deducting bad debts. For book purposes, the corporation uses an allowance for doubtful accounts. During 2017,...
-
discuss how business owners, managers, and other organizational leaders use the four basic financial statements to make business decisions. Your discussion should include: A description of the four...
-
Linden textbook - read Chapter 6. Personal Learning Journal post -- Unlike your initial journal post where your shared your course expectations, this and your subsequent journal posts are open topic...
-
How will you record this transaction? a. What happens to your total assets if you buy a car in cash?
-
You have a new accountant. Where would you go to invite your accountant to your company file?
-
(a) Laser intensities are quoted in units of W/cm, and electric fields are quoted in units of V/cm. (i) Give the numerical value of the electric field in a laser focus of 100 W/cm intensity (a...
-
Assignment - Case Study 1: Information Security and the National Infrastructure Read the Infosecurity Magazine article...
-
Integration is a vital concept when applied in one?s life. Integrating your life means making ideal choices. Perfect choices on the other go in line with quality decisions. Quality decisions lead to...
-
For the following table, assume a MARR of 10% per year and a useful life for each alternative of six years that equals the study period. The rank-order of alternatives from least capital investment...
-
The Ford motor company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal...
-
A company manufactures mother boards for various computer manufacturers. Design changes in computer processors, which are expected to increase sales, will require changes in their manufacturing...
-
(a) The longitudinal data set "v4c" is in the vertical format; transform it into the horizontal format. (b) Transform the data set you obtained in part (a) back into the vertical format.
-
Perform some exploratory analysis on the DTS study described above. (a) Compute the mean and standard deviation of the HamD scores for the two treatment groups at each time point. (b) Treat repeated...
-
Plot the mean/SD of HIV knowledge of adolescent girls at baseline and three months post treatment stratified by treatment for the Sexual Health study.
Study smarter with the SolutionInn App